Property Tax Rate Cap

States curtail the ability of local governments to increase property taxes through three common mechanisms: limitations on increases in tax rates, assessed values, and tax levies. Some states also require full disclosure to the public of any changes in the tax rate. Many states allow the local jurisdictions to override the limit by majority vote of the electorate or some other mechanism. This table provides the limit names and types adopted by each state, the terms of each limit and a description of the override process. The initial construction of this table relied heavily on the ACIR report produced by Daniel Mullins and Kimberly Cox (1995). Scholars using our table to do research on tax limits should also cite their work as foundational in the field (Mullins, Daniel and Kimberly Cox. 1995. Tax and Expenditures Limits on Local Governments, M-194, Washington, DC: Advisory Commission on Inter-Governmental Relations.)

The tax rate shall not exceed, for the state, 4 mills for general fund, 1 mill for charitable organizations, and 12 mills for schools; for counties, 12 mills plus 6 mills for schools; for cities, 8 mills; and for school districts, 25 mills. Debt service limits are up to 1% of assessed value for the state debt; up to 2% for counties, up to 4% for cities and towns, and up to 4% for school districts.

Override Process:

None

Footnotes:

This limit went into effect for counties and municipalities in 1890 and school districts in 1911.
Additional limits are imposed on special districts, depending on the type of district.

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